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“If sports betting becomes legal in California, it'd immediately become the top market in the country.” Axios San Francisco
Current status
Sports betting is not legal in the state of California, with the sole exception being horse racing at licensed race tracks.
The most notable legalization campaign came in 2022 when a consortium of sportsbook operators (DraftKings, FanDuel, BetMGM, Fanatics) called the Sports Betting Alliance spent millions of dollars on ad campaigns in support of Proposition 27, a ballot proposition that was defeated overwhelmingly by public voters in the general election on November 8th, 2022.
Prop 27 was fiercely opposed by Native American tribal groups in California, who would no longer have exclusivity over gaming rights in the state if it passed. The two major political parties in California came out in support of the tribal groups. Advertising spend for and against Prop 27 totalled $400 million which comfortably surpassed California’s record for a single proposition.
The Sports Betting Alliance Tribal Advisory Board
On April 1st 2025, at the Indian Gaming Tradeshow & Convention in San Diego, the Sports Betting Alliance Tribal Advisory Board, which includes six members from the tribal groups, discussed ideas to legalize sports betting under total tribal control. The legalization campaign would supposedly be entirely funded by the sportsbooks. According to the Legal Sports Report (LSR), that claims to have had access to an early framework, “the tribes would form a single statewide entity that would hold all licenses and maintain ownership of the online sports betting market … operators would pay a uniform revenue share, including a minimum annual guarantee to each tribe, with additional upside based on performance.”
“The Tribal Advisory Board was formed by the Sports Betting Alliance with a clear purpose: to bring tribes together to learn more about sportsbook operations and to explore how this industry can be shaped to serve tribal interests,” said Daniel Salgado, former tribal chairman of the Cahuilla Band of Mission Indians and a member of the SBA’s advisory group.
Backlash From Tribes
False news reports (by a media outlet that attended the discussions) claiming that the plans had been agreed upon by the SBA and the tribal groups sparked backlash from the California Nations Indian Gaming Association (CNIGA) and Tribal Alliance of Sovereign Indian Nations (TASIN) who came together to issue a join statement that accused the SBA of a breach of trust.
“Tribal leaders are offended that the Sports Betting Alliance invited a reporter into what was intended to be a private roundtable discussion among tribal leaders regarding this controversial issue.” Tribal spokesman
The truth seems to be less promising for the sportsbook consortium. Direct reports from a tribal spokesman suggest that while progress was made in the discussions the goal of coming to a clean consensus is still far away.
“While the meeting was productive in some ways, the suggestion that an agreement had been reached between tribes and commercial operators is simply false. Further discussions among tribal governments are expected to take place in the coming weeks and months … establishing an acceptable framework and governance model will take time. This is a complex matter that involves navigating federal, state, and tribal laws, which requires thorough debate and careful resolution Tribal spokesman”
Future Prospects
Tribal leaders have publicly stated that they should be leading any campaign to legalize sports betting. The SBA is clearly willing to appease the tribal interests if the initial framework terms reported by LSR are accurate so it seems likely that at the very least, there is scope for a plan to be agreed upon by both groups.
If enough signatures can be gathered, then we could see another vote as early as 2026. The last one was a dismall showing for the SBA with only 16% in support of the legalization but there are plenty of variables that could shift that number upwards between now and the next vote.
Written by
Co-founder of Pinnacle Odds Dropper and Editor of The Steam Report - a popular weekly advantage betting newsletter